My Name is Paul H Cosentino. I started this Blog in 2011 because of what I believe to be wrongdoings in town government. This Blog is to keep the citizens of Templeton informed. It is also for the citizens of Templeton to post their comments and concerns.

Paul working for you.

Thursday, February 2, 2017

Here Are The Countries Where Millennials Will Struggle The Most To Support Retirees

Here Are The Countries Where Millennials Will Struggle The Most To Support Retirees

The United States is a demographic time bomb, plain and simple. Over the next 30 years, the U.S.
economy will face an unrelenting demographic transition as ~75 million
baby boomers exit the highest wage earning years of their life
and start to draw down what little retirement savings they've managed to
tuck away while wreaking havoc on the public "safety net" ponzi
schemes, like Social Security, that will almost certainly be insolvent
in a decade.

Per the U.S. Census Bureau, over the next 30 years, the
number of people in the U.S. over the age of 65 is expected to double
while those 85 and up will triple. Needless to say, the overall
population growth of the United States is a fraction of that which means
that millennials are about to get crushed by their parents....so it's
probably a good thing they already live in mom and dad's basement.

But, since misery loves company, we figured we would take this opportunity to highlight Bloomberg's
"Sunset Index" which tracks the number of working age people per
retiree, by country and confirms that the United States is far from
alone in their pending demographic crisis.

While France and Singapore are currently the worst off with only 2.2
workers per retiree, the map below highlights just how pervasive the
aging population crisis is around the globe.

The world’s working-age population is shrinking faster than
expected, leaving fewer people to support a growing number of seniors, according to the Bloomberg Sunset Index.

As seniors increasingly outnumber people still in the workforce,
pressures rise on investment pools, medical systems and funds to build
economies for future generations.

“The demographics cannot be ignored, but there are solutions,”
said Suzanne Kunkel, director of the Scripps Gerontology Center at
Miami University in Oxford, Ohio. “Those solutions need to be cultural,
political, economic. There is no magic answer. The reality is China will
deal with it differently than Italy.”

Asia could be facing the toughest choices in allocating
resources. The Asia Pacific Risk Center estimates the region’s elderly
population will rise 71 percent by 2030, compared with 55 percent in
North America and 31 percent in Europe.

Of course, the financial burdens placed on young people around the
world as a result of aging populations is highly dependent upon the
extent of social services that have been promised and just how poorly
funded those ponzi schemes are..which doesn't bode well for the United
States.

“There are other-than-alarmist views about population aging,” said
David Ekerdt, director of the Gerontology Center at the University of
Kansas. “Advanced economies face rather different challenges depending on the social provisions they have promised and the declines in fertility that have occurred in these nations.”

The U.S., for example, has “very high health-care costs for all citizens,”
he said. “I would also say, politically, that it’s a large leap to
assume that social spending, if reduced for one group, would be applied
to another group.”

But, not to worry, we're sure that markets are adequately
discounting these long-term demographic risks that are almost certain to
lay waste to the global economy over the next two decades.